Comment on Cyberhomes

I just read the post from My Tech Opionion. There are multiple home “valuation” sites popping up. I have to say that this really is great technology. The ability to get real time info on home values, demographics, and even school information. However, I would have to caution any real estate agent or broker thinking about integrating such tools like Zillow and Cyberhomes from FNRES into their web sites or searches.

For one thing, the values are off, in my case in Danville, CA by about $200K. I know this because I typed in my own address and found that the home right next to me (in the same neighborhood) is valued almost $200K more than mine. It has 200 square ft. less and 2000 squ ft less lot. The price is also not indicative of what the home would actually sell for. I looked at the comps and even though 4 other homes have sold (within the last year) in the neighborhood (all within 200 yrds), they were not used as comps. Very strange. I’m not sure how it chooses.

My caution is this: Let’s say a client logs onto this web site to find out what their home is worth. You show up for the listing presentation, go through your CMA and come up with a selling price. They show you the print out of their home from Cyberhomes. The price on it is $200K higher than what the home would actually sell for. The client claims that they got this information from your web site. I guess at this point you have to admit that the information is wrong and that you have incorrect information on your web site. I pride myself in being upfront and honest with my clients.

Also, this software doesn’t take into consideration some of the mitigating factors of home pricing. I guess we all know that since we would be out of a job otherwise.

All I’m saying is to be careful and to do some investigating on these websites before using them. I still think it can be used as a great tool but I would never actually direct my clients to such web sites without a disclaimer.

Let me know what you guys think….